Struggling to meet your home insurance premium each month? There is probably something you can do to improve the situation. Whether your home is over-insured or you need to make some policy adjustments, these tips should help you bring your insurance premiums to a more reasonable monthly rate.
Increase Your Deductible
Increasing your deductible is a sure way to lower your homeowner’s insurance premium, but it does come with a bit of risk. When deciding whether a large or small deductible is best for you, you should be sure to take a close look at your emergency fund. If you have a decent amount of funds saved up, covering your high deductible will not be an issue, and you’ll be able to enjoy lowered monthly payments in the meantime. On the other hand, you might be best off sticking with a low deductible and higher monthly payment if your emergency fund is low. In the event that disaster strikes on your home, your odds of being able to cover your deductible will be much higher.
Bundle Home and Auto Insurance
Many insurance companies offer a discounted rate if you get a bundled home and auto insurance policy with them. The discounts can run anywhere from 10% to 25% of your anticipated policy premium, which can result in significant savings. If you’re able to pay for both premiums together, you’ll be able to consolidate your payments, which adds convenience. Even if you pay your bills separately, having two or more policies with one insurance carrier can save you some extra money when your policy is up for renewal.
Don’t Over Insure Your Home
Home insurance is critical, but it is entirely possible that your home is covered by too much insurance, and you’re overpaying as a result. If you have been with the same insurance company for several years, be sure to speak with your agent to ensure your coverage is still accurate for your home’s size and features. Most often, homeowners end up overpaying because of inflation guards. Inflation guards boost the level of your coverage as inflation increases. However, sometimes inflation guard percentages can exceed the rate of inflation, causing homeowners to pay more per month than necessary.
Choose the Right Home Insurance for You at Freedom Insurance
We offer comprehensive, customized coverage from numerous major insurance carriers and make it easier than ever to find affordable policies that are precisely what you need. We have been serving clients throughout the greater Howard County and Carroll County areas since 1979, and we look forward to helping you and your family thrive. Get in touch today by calling (410) 795-2000 or requesting a free quote.